Why Wal-Mart Hasn't Conquered Brazil

When asked where she does her shopping, Ivanira de Pontes Duarte, a 51-year-old maid in São Paulo, says it depends on what she’s looking for. If she needs olive oil, a small shop in the middle of her two-hour commute is her go-to spot. Hypermarket chain Extra, a unit of France’s Casino Guichard-Perrachon, has the best deals on cleaning supplies, but only on Wednesdays, when they’re on sale. And a local street fair is where she finds the cheapest produce. One place the store-hopper hasn’t tried is Walmart. “I’ve seen their ads on TV, and their prices don’t seem that much better than everyone else’s,” she says. “It’s a question of savings. Most Brazilians don’t make very much and we need to save where we can.”

Two decades after entering South America’s biggest market, Wal-Mart Stores’ Brazil unit is still struggling to connect with consumers and losing money. While the company’s relentless focus on everyday low prices helped it become the world’s largest retailer, the strategy isn’t working in Brazil where shoppers routinely hit multiple stores to snag the best deals on every item.